India raises gold import duty to 15% as imports slump
India's gold imports just dropped sharply, thanks to the government raising import duty to 15% on Wednesday and putting new limits on how much tax-free gold jewelers can bring in.
These steps were meant to help steady the rupee as prices climbed due to unrest in the Middle East.
Now, jewelers have tighter quotas: only 100kg tax-free per license, with more allowed only if they export one-half of it.
Indian buyers choose digital gold
The impact is clear: India's gold imports fell sharply compared to last year. With higher costs and weaker demand, some traders have paused imports altogether.
People are turning instead to things like digital gold and ETFs. Even with all these changes, annual gold use is still expected to top 700 tons, but delays and official bottlenecks are making things tough for the market right now.
The government hopes these moves will keep inflation in check and support the rupee.